Latest White House talks on stablecoin yield make 'progress' with banks, no deal yet

CoinDesk

by Jesse Hamilton

February 19, 2026

AI-Generated Deep Dive Summary

The White House hosted another meeting involving bankers, crypto experts, and policy makers to address the stalled market structure bill centered around stablecoin yields. While progress was made during the discussions, no final compromise deal has been reached yet. The talks focused on whether stablecoins should be allowed to offer rewards or yield-bearing products, a point of contention between the crypto industry and traditional banks who argue such features could harm their deposit businesses. The meeting extended beyond its scheduled two-hour timeframe, with White House officials applying pressure by keeping participants until they made progress. Key figures like Ji Kim from the Crypto Council for Innovation and Coinbase's Paul Grewal highlighted the constructive nature of the dialogue but emphasized that more work is needed. The discussions built on previous meetings aimed at creating a regulatory framework that balances consumer interests and maintains U.S. competitiveness in the global crypto market. Stablecoin rewards remain a major sticking point, as banks have pushed for their outright ban while some compromise proposals suggest limiting them to specific use cases. However, even if an agreement is reached on this issue, it won't automatically secure congressional approval. The Senate Banking Committee must hold a hearing and gain bipartisan support, which currently appears challenging given ongoing disputes over other aspects of the Digital Asset Market Clarity Act. Democratic negotiators have insisted on addressing issues like preventing government officials from holding crypto interests, filling key regulatory positions, and tightening controls on illicit finance risks in DeFi. However, Republican opposition has stalled these demands, leaving the bill's passage uncertain. The outcome of these negotiations will significantly impact the future of U.S. crypto markets, determining whether they can achieve the regulatory clarity needed to attract more investment and activity. The stakes are high for both the crypto industry and traditional finance sectors. A successful agreement could pave the way for stablecoins to become a integral part of the U.S. financial system, fostering innovation and competition globally. However, continued gridlock could delay or derail this progress, with potential implications for market growth and investor confidence in digital assets.

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Originally published on CoinDesk on 2/19/2026